Presentation KCPMI 2016 PDD Days Portfolio Balance
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Transcript of Presentation KCPMI 2016 PDD Days Portfolio Balance
Strategic PlanningProject Portfolio Management
Project Execution
Strategic PlanningProject Portfolio Management
Project Execution
* Kotter International. Forbes, July 9, 2013. “When CEOs Talk Strategy, 70% of the Company Doesn’t Get it.”
What strategy?71%
Got it29%
Successful16%
Challenged53%
Failed31%
Strategic PlanningProject Portfolio Management
Project Execution
“The four biggest universal problems in project portfolios are:1. Too many active projects2. Wrong projects 3. Projects not linked to strategic goals4. Unbalanced portfolio” *
* Kendall, Rollins. Advanced Project Portfolio Management and the PMO (p. 207)
Strategic PlanningProject Portfolio Management
Project Execution
Kendall, Rollins on Balance, cont. *• “Too much on the supply side, not enough on market side• Too much development, not enough research• Too much short term, not enough long term• Not reflective of the organization’s most important assets…”
* Kendall, Rollins. Advanced Project Portfolio Management and the PMO (p. 207)
BenefitRisk
• Benefits are speculative & not audited• Risks are difficult to envision & compare• Portfolios change over time and no one notices• “The PPM Zone”
BenefitRisk
1 –Establish rules for profiling projects
2 –Monitor projects to reflect changes
3 –Governance to optimize balance
StrategySpeed time to market Increase efficiency Products for millennials
Goals / ObjectivesGrow revenue 10% Reduce policy admin costs 5% Launch 4 new products
Mission / VisionFinancial security Be “top of mind” among customers
• 1 = Expand the quantity of new products• 2 = Increase penetration of millennial market• 3 = BothExternal Focus
• 1 = Reduce admin costs / increase efficiency• 2 = Reduce time to market for new products• 3 = BothInternal Focus• 1 = ROI less than 5%• 2 = ROI between 5% and 15%• 3 = ROI greater than 15%
Financial Return
• 1 = We do this all the time• 2 = We have done something similar• 3 = We don’t know what we don’t know
Solution Experience• 1 = A small work group• 2 = More than one business leader involved• 3 = Enterprise-wide
Scope of Business Impact• 1 = No need for external vendor support• 2 = Vendor support for key deliverables• 3 = Vendor support for ALL deliverables
Vendor Dependency• 1 – Minimal need for choke point resources• 2 – Some need for choke point resources• 3 – Choke point resources essential
Choke Point Resources
Project Requests
“Top down”or “bottom up”Request form:• Value Profile• Risk Profile• Project Attributes
Governance TeamProject Request Process
Project Database& Dashboards
Initial Decisions:• Reject• Return – Not in Good Order• Accept
Monitor Projects
Exercise – Project Profiles in Your World• What are 2-3 key strategies in your organization? What Benefit profile attributes are needed to align projects with these strategies?
List the Benefit profile attributes on a 3x5 card• Think of some projects that “went south” – what risk profile attributes would have predicted their failure?List the Risk profile attributes on a 3x5 card
Project Status Reporting
Focus on changes to:• Benefit profile• Risk profile
PMO Reporting & Dashboard Preparation• Validate reports• Reflect external environment• Coordinate governance meetings
Project Reports Dashboards
New sponsor questions predecessor’s decisions
A “choke point” resource, takes a new jobUnproven vendor with niche skills
New branding = project less valuable
Scope change = many new stakeholders
New software platformNewfocus on career agents
Project / Risk Category Solution Experience Scope of Business Impact Vendor Dependency Choke Point ResourcesProject 1Project 2Project 3Project 4Project 5
Low RiskMed. RiskHigh Risk
Risk concentration -experience & choke point resources
Admin Costs46%
Product Pipeline23%
Millenial Mkt15%
Time to Mkt8%Multiple
8% Too much effort on reducing admin costs
Exercise – Plot 2-3 Projects (3x5 card)
Mark Price Perry, Business Driven Project Portfolio Management
VP Operations CIO
VP Marketing VP FinanceEPMO
Sponsor – C.O.O.
Decision Making:• Start• Continue• Delay• Stop
Portfolio Governance MeetingsProject Dashboards
Stakeholder Communication Process
Guiding Principle:Stop Starting – Start Finishing!
Benefit Risk
Projects 3 & 5 - lack of solution experience
Projects 3 & 5 rely on choke point resources
Too much effort on admin
Need more effort on new products
Benefit Risk
Project Name Project Type Risk Score Value Score StartDate EndDate Status Decision (Start, Continue, Delay, Stop)Project 3 Admin –Incremental 9 4 8/16 12/16 Develop Delay (review next meeting)Project 5 Compliance 10 4 7/16 10/16 Testing Continue (risk mitigation plan)Project 6 Admin –Incremental 4 4 9/16 12/16 Planning Delay (review next meeting)Project 9 Admin –Incremental 12 3 8/16 11/16 Develop StopProject 11 New product 7 8 ASAP ASAP Pending Start
Review your 3x5 cards and identify your action plan to:• Provide a clearer picture of your portfolio• Connect projects with strategy • Establish governance processes that support effective project decisions decisions• Replace “Really Bad Idea” projects with “Improve the Business” projects